Ash and beech.
Various other deciduous broadleaves.
Growing from the base of the tree or from cavities / wounding sites on the main trunk. Also growing from stumps and on fallen trees.
Annual cap. Grows singularly or more commonly in groups. Stem golden-white and a little shaggy. Smooth above (partial) ring that begins as a full web protecting the gills. Cap surface golden orange, beginning scaly and sometimes smoothing off. Can adopt a near-varnished appearance. Gills creamy white becoming rustic gold-brown due to sporulation.
More research has been undertaken on Pholiota squarrosa, which is considered to facilitate in the failure of trees subject to an intense white rot with early-stage selective delignification. The golden scalycap may be attributed to similar eventualities though is, anecdotally, restricted more to dysfunctional areas of the host tree and potentially indicative of physiological decline. When found in abundance encircling a stem, investigations into stability may be necessary.